E-Business System about Chinese Supermarket in the UK - Case Study Example

E –Business System April 25, E-commerce and E-marketing work system about Chinese supermarket, Huaxing ChineseSupermarket, in UK Introduction Enhancing marketing strategies includes implementation of its e-commerce and e-marketing work systems. The research delves on information systems. The research delves on work systems. Effective electronic business entails implementing tools needed to ensure compliance with preset standards. Huaxing Chinese Supermarket’s implementation of its e-commerce and e-marketing strategies ensures achievement of the company’s profit-based goals and objectives. Part A 1. Introduction of the E-Business System and Organisation The Chinese grocer chin, Huaxing Chinese Supermarket uses on e-commerce and e-marketing work system that makes to successfully make significant contributions to achieving the organization’s goals and objectives. The company implements the e-commerce business system. Under the system, the company uses an online website, http://www.huaxing.co.uk/, to increase revenues generated from the company’s physical store revenues. In the e-commerce and e-marketing business system, the current and future customers visit the company’s online website (Daft, 2011). The company’s fixed office phone is 01316629892. The company sells the usual supermarket products. Further, the company’s website informs the current and future customers that some of the Huaxing products are imported from different countries. One of the grocery chain food supply group is the Japan-based grocery chain suppliers group. Another food supplier group includes all companies located in Korea. Another grocery chain food supply group is the China -based grocery chain suppliers group. Another food supplier group includes all companies located in South Korea. The other suppliers of the Chinese store fall under the Thailand supplier group (Shajahan, 2007). Furthermore, the company, Huaxing Chinese Supermarket in the United Kingdom, also advertises the many benefits of taking advantage of the company’s e-commerce and e-marketing business online shopping environment (Ferrell, 2010). The company can advertise the friendly personality of all online store and physical store sales personnel. One of the attractions of the company’s online website is permitting the customers to order the delivery of the grocery and other supermarket items to the buyers’ preferred addresses (Gupta, 2011). The customers can save time ordering their supermarket goods online compared to visiting the Huaxing Chinese Supermarket in the United Kingdom physical store. Moreover, the Huaxing Chinese Supermarket in the United Kingdom website work system includes offering the customer several choices. The website contains pictures of the company’s top selling items. With the work system’s online website pictures, the current and future customers can vividly pick out which products to check out online. With the pictures, the e-commerce and e-marketing customers can seemingly have the same feeling as the person who personally drops by the Huaxing Chinese Supermarket in the United Kingdom to see how each fruit or vegetable classification or name looks like (Bagad, 2009). Work System Snapshot of Huaxing Supermarket (U.K.) *www.huaxing .com.uk offers online supermarket shopping (e-commerce and e-marketing) Customers of Huaxing Supermarket (U.K.) *People who buy supermarket products *Wholesalers and retailers of supermarket products Products *Grocery Items *Other supermarket products Business Process * Current and future customers log on to http://www.huaxing.co.uk/ *Customers pick out their preferred supermarket product choices from the available website picture choices. *Customer enters the order and pays using credit cards. * Huaxing finds the supermarket products ordered by the customers. *Huaxing delivery department delivers food choices to the e-commerce & e-marketing customers. *If the products are not in the warehouse, the delivery department buys the products from the Huaxing suppliers. *The suppliers of Huaxing Supermarket deliver the goods to the Huaxing warehouse. *When the food products arrive at the Huaxing Supermarket, the Huaxing warehouse delivery staff sends the ordered products to the e-commerce customers’ preferred delivery destination Participants in Information Technology *Costumers eager to buy supermarket items from the Huaxing Supermarket e-commerce /e-marketing website, www.huaxing.com.U.K. *The Huaxing Supermarket warehouse staff fills the orders of the e-commerce / e-marketing customers for. *The Huaxing Company’s shipping department sends the ordered food products to the current and future customers. *Internet (Infrastructure) Other advantages of shopping at www.huaxing.com.uk The company also offers several advantages to the company’s current and future customers. The advantages will increase the online purchasing demands of the company’s current and future customers. The company e-commerce and e-marketing website indicates that one of the advantages of taking advantage of company’s supermarket chain of store is giving the customers their right to pick their own diverse choices (Alter, 2006). Further, the advantage of giving the customers several fruit choices or vegetable choices is to allow customers to pick their preferred fruit choices, without need to personally travel the physical store. The advantage allows the customers to purchase their own sets of vegetable products. Another customer may prefer to order bread and butter as additional items to one’s vegetable preferences (Daft, 2011). Additionally, the company’s online e-commerce and e-marketing display of different choices appeals to the demands of most of the Huaxing Chinese Supermarket in the United Kingdom customers. One customer may prefer to buy carrots. Another customer may pick cabbages. A third customer may only purchase a 20 apples or strawberries. A third customer may pick melons. A customer may only purchase fish products (Bagad, 2009). Moreover, allowing the e-commerce and e-marketing online Huaxing Chinese Supermarket customers to order by just clicking the computer mouse. The e-commerce and e-marketing customers simply pick their preferred items appeals to the current and future customers’ economic tastes. One customer may prefer to buy the one type of vegetable because it has the lowest price. Another customer may choose the highest priced fruit because the customer feels that higher priced products indicate they are automatically of higher quality or value (Bagad, 2009). 2. Tools and Techniques used by businesses and organisations to evaluate E-business Systems. There are several tools and techniques used by businesses and organizations, including Huaxing Supermarket, to evaluate their e-commerce or e-marketing online business systems. One very popular tool is demand tool. With a high demand for the company’s products, the business is normally evaluated to have a very high passing mark. On the other hand, a low demand for the company’s online product choices indicates that the company’s evaluation grade for the online supermarket chain business is a huge red F, Failure. Further, another very popular tool for determining whether the company’s electronic commerce or electronic marketing online business work system is a success or failure is to use the set of financial statement analysis tools. The gross profit financial statement analysis tool indicates how much gross profit was generated from selling the company’s online supermarket products. The gross profit tool formula shows that the gross profit is the different between Huaxing Chinese Supermarket in the United Kingdom entity’s net sales and the cost of purchasing the products (Crosson, 2011). Furthermore, the company’s e-commerce and e-marketing website sells the products at amounts that are higher than the cost of procuring the products in order to generate gross profit figures. A gross profit online electronic commerce performance within one accounting period indicates the company receives a passing grade. A very high online electronic business gross profit performance indicates the company gets a very high or excellent online electronic business performance evaluation grade (Crosson, 2011). Moreover, another tool used to determine whether the company performed well during the prior accounting period is the use of the net profit financial statement analysis tool. The aim of all business is to generate net profits. When the company does not generate a net profit during one accounting period, the company automatically receives a failed electronic business performance grade. On the other hand, the company will receive a very high electronic commerce evaluation grade if the company is able to generate very high net profit performances during one accounting period. The net profit financial statement analysis tool is arrived at by deducting all expenses of operating the Huaxing Chinese Supermarket in the United Kingdom from the gross profit figure. When the company’s income statement shows that the company’s total expenses are more than the gross profit output, a net loss crops up. When this occurs, the company receives a failed electronic business performance grade (Helfert, 1994). Further, another tool used to determine whether the Huaxing Chinese Supermarket in the United Kingdom’s e-commerce and e-marketing strategies deserves a passing electronic business performance grade is to use the current ratio financial statement analysis tool (Warren, 2009). The tool shows whether the company’s current assets are more than the company’s current liabilities. The current assets are taken from the company’s periodic balance sheet. Similarly, the company’s liabilities are taken from the same balance sheet. The formula to generate the current ratio financial statement analysis tool output is to divide the total current assets by the company’s total prior operating period’s current liabilities. If the result of the computation is positive, the company receives a passing electronic business performance grade. If the result of the computation is negative, the company receives a failed electronic business performance grade (Crosson, 2011). Moreover, the stockholders equity amount represents the investment of the stockholders. The investments are usually in the form of cash. Sometimes, the investments are in the form of assets like cars, tables, chairs, computers, equipments, and the like. Other investors prefer to invest computers to the company. Other investors prefer to invest office supplies to the company (Noreen, 2008). Additionally, another tool to determine whether the company’s e-commerce and e-marketing strategies will receive a passing grade is to use surveys. The online current and future customers of Huaxing Chinese Supermarket in the United Kingdom are asked to freely answer several survey questions. The company’s research team will tally the votes of the surveys. The surveys will indicates some of the complaints of the current and future customers (Johnson, 2010). Further, another popular business tool that is used to determine whether the Huaxing Chinese Supermarket in the United Kingdom’s e-commerce or e-marketing strategies are able to get a high electronic business performance grade is use the return on investment financial statement tool. The tool is used to determine how long the company will be able to recuperate the total amount invested in the business (Hall, 2000). When compared to a company that has a longer time to recuperate its investments, the company that will be able to recuperate the amount of investment within a shorter time period will have a better electronic business performance grade. Based on the company’s website, Huaxing Chinese Supermarket in the United Kingdom will be able to recuperate its total investment amount. Since no one can exactly predict the future, the time required to recuperate the company’s investments is only estimated. However, the fact remains that the company will be able to recuperate its investments with the foreseeable future years. Moreover, another popular tool to determine whether to company’s e-commerce or e-marketing strategies will receive a passing electronic business performance grade is to use the economic order quantity tool (Bagad, 2009). The economic order quantity tool shows whether company is able to reduce the warehousing and other storage-related costs of ordering quantities of one fruit or vegetable product choice. With more unsold quantities of spoiling food stacked in the stores’ warehouses, the food items will easily spoil. When the products spoiled because there is low demand for the company’s online product choices, the company will get a failed electronic business performance grade. When the company spends too much on reordering the same food products from the Huaxing Chinese Supermarket in the United Kingdom suppliers, the company will receive a failed electronic business performance grade. The order cost is normally based on the number of orders. With more orders made to the suppliers of Huaxing Chinese Supermarket in the United, the company spends more amounts to order the products. When this happens, the company will receive a failed electronic business performance grade. 3. Evaluation of selected E-business system within the context of Alters Work System Principle The Huaxing Chinese Supermarket in the United Kingdom’s e-commerce and e-marketing performance complies with the basic economic principle of demand, incorporating Alter’s Work System Principle to implement efficient work practices (Baumol, 2011). The e-commerce and e-marketing strategies include implementing client-based online services (Hume, 2007). The demand principle states that as the prices of goods or products increase, the demand for the products or goods are decreased. With the current prices of the Huaxing Chinese Supermarket in the United Kingdom’s products, there is a high demand for the company’s food products (Bagad, 2009). Applying Alters Work System Principle "Perform the work efficiently", the company applies this Adler policy to its e-commerce and e-marketing online business. The work of the Huaxing Chinese Supermarket in the United Kingdom is to supply the food, vegetable, and other supermarket needs of the United Kingdom target market. By doing so, the company is able to apply the Adler principle stating that work is done to accomplish something. By supplying the current and future customers’ fruit, vegetable and other supermarket needs, the company is accomplishing something. Thus, the company ha s applied the Adler principle well (Alter, 2006). Further, the company’s e-commerce and e-marketing strategies include the Adler principle indicating that the company’s work system is focused on a purpose-based electronic online business strategy. The company’s business is purposely to generate profits. To generate profits, the company must generate sales. To generate sales, the company must promote the production through both physical store selling and electronic business selling. To generate high demand for the company’s e-commerce and e-marketing products, the company shows the many advantages of purchasing the Huaxing Chinese Supermarket in the United Kingdom’s online products. Consequently, the company applies the Adler work principle very effectively (Alter, 2006). Furthermore, the company’s e-commerce and e-marketing strategies involve the implementation of the Adler principle of coordinated synergy among the different departments of the company. Alter insists that information is used to capture, transmit, manipulate, or store information in one or several business processes (Cano, 2003). The purchasing department buys the goods from the Huaxing Chinese Supermarket in the United Kingdom supply chain partners. The store personnel promote the company’s online store’s fruit, vegetable, and other supermarket products by answering the current and future customers’ queries as to the benefits, prices, expiry dates, usage instructions and other matters. When the company’s electronic business customers make an online purchase, the company’s deliver y department will process the delivery of the food products (Alter, 2006). Additionally, the company’s e-commerce and e-marketing strategies’ work systems ensure better achievement of the company’s preset goals and objectives of the company. The work system includes humans using information technology to hasten work, reduce time and increase outputs, precipitating to more revenues and profits (Kaplan, 2004). The goals and objectives focus on filling the fruit, vegetable, and other supermarket needs of the United Kingdom customers. The work system includes using information system to generate customer demand for the Huaxing Chinese Supermarket in the United Kingdom products. To generate demand, the company coordinates with suppliers. The suppliers deliver the goods (products) to the Huaxing Chinese Supermarket in the United Kingdom main warehouse. The warehouse delivers the goods to the different Huaxing stores (Alter, 2006). Further, the Huaxing Chinese Supermarket in the United Kingdom’s e-commerce and e-marketing information system is complicated. When the suppliers’ goods reach the Huaxing Chinese Supermarket in the United Kingdom warehouse, the warehouse receiving clerk makes a record of all newly received items. After recording the received goods, the warehouse clerk sends the company’s delivery trucks to the Huaxing Chinese Supermarket in the United Kingdom store location. The store displays the newly received goods on the empty Huaxing Chinese Supermarket in the United Kingdom store shelves. The customers make the online purchases. After the purchases, the store personnel will take charge of ensuring the purchased goods are delivered to the customers’ doorsteps. This is the very essence of Adler’s information system-based work system (Fernandez, 2010). Discussion of key efficiency benefits and challenges arising from the system and ethical issues. The key efficiency benefits and challenges arising from Huaxing Chinese Supermarket in the United Kingdom’s implementation of its e-commerce and e-marketing work systems and ethical standard issues indicates the company receive a 5 out of a total of 5 total stars grade. The 5 star survey grade received by Huaxing Chinese Supermarket in the United Kingdom from the online respondents, http://www.yell.com/s/chinese+supermarkets-uk.html, indicate that the company implements key efficiency benefits and meets challenges with flying colours. The company is able to supply all the needs, wants, and caprices of the current and future customers by implementing all laws, ethics, and other standards required by United Kingdom society. 4. Synthesis of the findings in the Conclusion to the Report. The e-commerce and e-marketing organization culture of Huaxing Chinese Supermarket in the United Kingdom is to ensure filling the needs of the electronic business customers. The company exists only to prioritise serving the food and other supermarket needs of the customers. If the customer wants to buy tomatoes, the company delivers tomatoes to the customers. If the customer wants to purchase salmon fish, the Huaxing Chinese Supermarket in the United Kingdom store personnel must deliver the required salmon fish to the discriminating customer. If the customer wants to buy hotdogs, the Huaxing Chinese Supermarket in the United Kingdom online personnel must never deliver hamburger patties to the customers (Hurwitz, 2010). In terms of tools used to determine whether the company’s e-commerce and e-marketing strategies should receive a passing or failing electronic business performance grade, the most practical tool should be grounded on the company’s financial statements. The financial statements include the all items owned by the company. The company that has more items owned is a financially better company than a company that has lower items owned. When the company sells its food products, the customer pay for the goods. Consequently, the company’s cash amounts will increase. When the company’s cash amounts will increase, the company can use the cash amounts to buy other items needed by the company. The company can also buy more store inventories. The store inventories include the fruits, vegetables, and all other products that are regularly sold in the Huaxing Chinese Supermarket in the United Kingdom outlets (Kendall, 2002). Part B 1. Applying tools and techniques for analysing and evaluating organisational information systems. The tools used for analyzing and evaluating the Huaxing Chinese Supermarket in the United Kingdom’s e-commerce and e-marketing information systems are effective in achieving the company’s goals and objectives. One of the tools, survey, shows that Huaxing Chinese Supermarket in the United Kingdom gets an excellent electronic business performance grade. One website, http://www.yell.com/s/chinese+supermarkets-uk.html, shows that Huaxing Chinese Supermarket in the United Kingdom generated a survey average grade of 5 out of a total 5 stars. The score indicates that the company was able to receive a perfect or 100 percent score from all the survey respondents. Based on the company’s e-commerce and e-marketing website, http://www.huaxing.co.uk/, the website can easily receive another 5 out of a total possible 5 stars. The website includes pictures of the products. The website also offers delivery services to the company’s online store and physical store. With the delivery service advantage, the company is able to generate more online sales. The online sales may come from current and future customers who prefer that Huaxing Chinese Supermarket in the United Kingdom deliver the food and other grocery products to the customers’ doorsteps, office cubicle or any preferred delivery locations. With the 5 star grade given the online survey respondents, there is very clear evidence that the company’s electronic business performance is excellent, in terms of delivery, food quality, prices, and promotion criteria (Alter, 2006). 2. Identification and critical Evaluation of the role of IT/IS in delivering electronic business systems. Huaxing Chinese Supermarket in the United Kingdom’s e-commerce and e-marketing strategies excellently implements information technology work system in delivering its electronic business systems. The company puts all required information on the company’s electronics business website, http://www.huaxing.co.uk/. Consequently, the current and future online customers of Huaxing Chinese Supermarket in the United Kingdom can get all the answers to their online food queries with the click of a mouse. The customers can use the website to order the online Huaxing Chinese Supermarket in the United Kingdom stores’ sales personnel to deliver a bag of groceries to the customer’s London branch. The information technology (Information System) convinces the online current and future customers to choose one of the many choices shown on the online company sales website (Alter, 2006). 3. Identification and evaluation of the contribution of electronic business systems to organisational management activities. The electronic business system where Huaxing Chinese Supermarket in the United Kingdom displays the company’s food products on the online website significantly contributes to the company’s organizational management activities. The online website gives the customers several food choices. The website also indicates that the online customers can ask for delivery of the products to the place where the customer lives or to any other preferred address. The online information allows the customers to determine if the company has a new set of food choices (Bagad, 2009). 4. Critical assessment of the ethical issues arising from the application of electronic business systems within a business or organisational context. The Huaxing Chinese Supermarket in the United Kingdom complies with all ethical issues. The ethical issues require the company to implement all acts considered as good or correct. The same ethical standard also requires that Huaxing Chinese Supermarket in the United Kingdom must not implement acts that will create a bad image of the company. For example, the company’s website clearly indicates that the company obeys all laws or policies of the community. Policies include implementation of all environmental protection laws. Ethical issues include treating each employee fairly. Fairly includes promoting only employees who deserve to be promoted. Promotions should not be based on discriminatory acts (Gonzales, 2002). Likewise, prioritizing the delivery of the goods ordered by the Caucasian electronic business customer to the detriment of the Korean customer who had first ordered the same food product should not be encouraged. The Korean customer may feel disgusted by the discriminatory sales act of one of the Huaxing Chinese Supermarket in the United Kingdom sales persons (Dubbink, 2006). The company must ensure that all its products are fresh or of high quality. Selling only fresh and high quality food products persuades the current and future customers to patronize the company’s supermarket products. With frees and quality food choices, the current and future customers will not think of filing cases against the company. When customers eat stale food, they will surely get sick. When the complaint is filed, the news of the stale food may damage the refutation of the company. When the reputation is destroyed, the demand for the Huaxing Chinese Supermarket in the United Kingdom food products will decline (Dubbink, 2002). Conclusion Based on the above discussion, enhancing Huaxing Chinese Supermarket in the United Kingdom’s e-commerce and e-marketing strategies includes setting into motion information system based work systems. The research shows that information systems play an important role in increasing customer demand for the company’s products. The research shows that work systems contribute to increasing the company’s service quality and product quality by reducing the customers’ time needed to purchase their supermarket needs. Evidently, Huaxing Chinese Supermarket’s application of its e-commerce and e-marketing strategies increase the possibility of achieving the company’s profit-based goals and objectives with flying colours. References: Alter, S., 2006, The Work System Method, System Press, London. 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